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Commerce · Q61

Costing

Graduate and Post Graduate · Commerce · question 61

Q61

The stores keeper should initiate a purchase requisition when stock reaches ________.

A.
Average stock level
B.
Minimum stock level
C.
Maximum stock level
D.
Re-order level
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
The stores keeper should initiate a purchase requisition when stock reaches Re-order level. Reorder level (or reorder point) is the inventory level at which a company would place a new order or start a new manufacturing run.